Stamford, Conn.-based fintech startup Tomo has doubled its mortgage footprint, now serving nearly a quarter of the U.S. market after expanding into Colorado, Connecticut, and Florida, the company said.
Tomo also has added jumbo loans to its product portfolio, offering financial flexibility and more choice for homebuyers, ease for real estate agents, the company said.
It's rapid expansion comes less than a year after Tomo first launched its home-buying technology platform in Washington and Texas. It also follows its $70 million seed round, one of the largest ever raised in the U.S.
Tomo was founded in October 2020 by former Zillow executives Greg Schwartz and Carey Armstrong.
"The mortgage is the catastrophe of the real estate transaction," said Schwartz, Tomo's CEO and co-founder. "For too long, homebuyers have been forced to accept an outdated process that's painful, cumbersome, and expensive. Tomo's rapid expansion is proof that there's tremendous appetite for what we've built — a digital experience, designed from the ground up to meet the needs of homebuyers today."
Tomo said it aims to disrupt the multi-trillion-dollar mortgage market by pairing its proprietary technology with local experts to deliver a simpler, faster, and less-expensive mortgage experience. The result eliminates complexity, reduces cost, and ensures on-time closings, all without the traditional headaches characteristic of the industry today, the company said.
In 2021, Tomo said, it closed 100% of its loans on time.
Its track record of closing on time is partly a result, the company said, of its exclusive focus on fixing the purchase mortgage experience instead of chasing the cyclical refinance market. As mortgage rates rise, many mortgage originators scramble to contend with new economic and operational realities as refinancings dry up, Tomo said.
Creating pre-approvals for customers within hours, not days, Tomo says it delivers the best rate for every homebuyer they serve; charges no lender fees, and ensures an on-time closing. The company has also partnered with real estate agents in each market it serves to provide a complete home-purchase experience with ease, simplicity, and confidence.
"Having a cutting-edge mortgage company available to help homebuyers purchase their dream home is one of the most important factors when they are ready to make offers," said Ruben Orozco, a real estate agent at RE/MAX Legacy in Sanford, Fla. "Tomo is fast becoming the premier lender when buyers need quick responses with super fast decision-making. Homebuyers want a lender that is in their corner building relationships and available when they need answers."
Tomo said it plans to add more markets later this year. The company is hiring for roles in Stamford; Seattle; Austin, Texas, and for remote work. Visit hellotomo.com/careers for more information.
